Thailand is contemplating raising the foreign tourist entry fee from the initially planned 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. The tourism tax, which was originally proposed in 2020 but never came into effect, could see an increase due to inflation and rising insurance costs, aiming to broaden coverage at private hospitals. The majority of the funds collected from this fee are intended to be directed toward tourist insurance, while the rest would be used for maintaining tourist attractions and infrastructure improvements.
This announcement follows a recent decision by the Thai government to eliminate the 60-day visa exemptions for visitors from 93 countries. This move, long in the making, was prompted by growing concerns over illegal activities by foreign nationals. Minister Surasak emphasized that his ministry is in the process of refining the methods for collecting the fee, ensuring it does not negatively impact the perception of travelers. Two options are being considered: collecting the fee via airline tickets or through the Thailand Digital Arrival Card (TDAC) system.
Airlines have expressed concerns about imposing a tax exclusively on foreign passengers, citing the inability to discriminate between foreign and Thai passengers. This could lead the government to collect the tax from all passengers, with a refund mechanism for Thai nationals through an application. Alternatively, the fee could be imposed using the TDAC system, which all foreign visitors are required to complete upon arrival. The final decision on the fee amount will largely depend on the estimated costs of accident insurance and healthcare at private hospitals, as unpaid medical bills by foreign visitors reportedly cost Thai hospitals approximately 2.5 billion baht annually.
In discussions about the insurance fund, Thienprasit Chaiyapatranun, president of the Thai Hotels Association, highlighted the importance of clearly defining the types of incidents covered by the insurance. Authorities should also determine the exact portion of the funds allocated for major infrastructure projects. For example, it is crucial to assess which incidents involving foreign tourists are burdensome to hospitals and whether the policy will cover situations like floods, construction accidents, or unlicensed motorcycle accidents.
As for the visa policy adjustments, authorities are working on a timeline to transition from 60-day visa exemptions back to 30-day and 15-day allowances, alongside visa-on-arrival options similar to those planned for 2024. Minister Surasak mentioned that the Ministry of Foreign Affairs, which leads the national visa policy committee, needs to liaise with other countries’ foreign ministries. The Ministry of Tourism and Sports is considering proposing visa scheme adjustments for certain countries, such as India, a key market for Thailand, where citizens currently only qualify for visas on arrival. The ministry supports introducing a 15-day visa exemption for Indian visitors. Meanwhile, the Tourism Authority of Thailand has been asked to reassess its goals and strategy for 2026 due to potential impacts from the ongoing US-Iran conflict, which could affect the target of 33 million foreign arrivals. Minister Surasak reassured that the shortened visa exemption should not deter visitors, as the average stay for most is only nine days.